Dynemic Products Q2 Net Profit Climbs 47% to ₹6.5 Crore as Margins Expand

Key numbers

P/E TTM	14.28xSector 34.09x
Market Cap	₹290.17 CrSpecialty Chemicals
RSI	51.67Neutral Zone
Promoter Holding	29.42%Unchanged QoQ

Key highlights

• Consolidated revenue from operations reached ₹127 crore in Q2 FY27, up from ₹89.3 crore in Q2 FY26
• Net profit for the September quarter increased to ₹6.5 crore, representing a 47.7% year-on-year growth
• Operating margins improved to 8.7%, a significant rise from the 6.5% recorded in the same period last year
• The company settled a tax liability of ₹173.82 lakhs during the quarter following a notice under the Income-tax Act
• TTM Price-to-Earnings (P/E) stands at 14.28x compared to a specialty chemical industry average of 38.25x

Revenue Jumps 42% YoY Following Capacity Utilization

Dynemic Products Ltd, a player in the specialty chemicals sector, reported a substantial rise in revenue for the quarter ended September 30, 2026. Revenue from operations climbed to 127 crore, marking a 42.2 percent growth compared to the 89.3 crore recorded in the corresponding quarter of the previous year. This performance follows the company expansion in manufacturing capacity, which reached a total of 22,644 MT per annum across its three units in Ankleshwar and Dahej as of August 2026.

The sequential growth was even sharper, with revenue jumping 47 percent from 86.4 crore in the first quarter of FY27.

Impact of Section 158BC Tax Disclosure on Bottom Line

During the quarter, the company addressed a regulatory tax matter under Section 158BC of the Income-tax Act, 1961. Dynemic declared an undisclosed income of 278.55 lakhs pertaining to prior years and subsequently paid an income tax of 173.82 lakhs. This payment was recognized as a tax expense in the Statement of Profit and Loss for the quarter.

Despite this one-time impact, net profit reached 6.5 crore, up from 4.4 crore in the year-ago period. Management has indicated its intention to obtain independent legal advice regarding the ongoing assessment proceedings and evaluate its accounting implications for future quarters.

Valuation Divergence Against Specialty Chemical Peers

From a market perspective, Dynemic Products is classified as a Strong Performer with a durability score of 90 and a valuation score of 57. The stock currently trades at a Price-to-Earnings ratio of 14.28x, which sits considerably below the sector P/E of 34.09x and the industry average of 38.25x. Technical indicators show a Day RSI of 51.67, placing the stock in a neutral zone.

While the one-year price change shows a decline of 24.72 percent, the current results highlight a recovering operating margin, which expanded to 8.7 percent from 6.5 percent on a year-on-year basis.

What to watch next

• Outcome of independent legal opinion regarding the Income Tax assessment proceedings
• Q3 FY27 financial results announcement expected in February 2027
• Impact of ongoing assessment proceedings on the company financial position

“The aforesaid undisclosed income has not been recognised in the books of account as assessment proceedings are pending.”

Dynemic Products · financial snapshot

Share price	₹233.47
Market capitalisation	₹290.17 Cr
Revenue (annual)	₹378.64 Cr
Net profit (annual)	₹19.94 Cr
Revenue (latest quarter)	₹86.43 Cr-17.07% vs previous quarter
Net profit (latest quarter)	₹5.19 Cr-14.58% vs previous quarter
P/E (TTM)	14.28×Sector 34.09×
Promoter holding	29.42%0.00% QoQ
FII holding	0.01%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.